Jeu Asael Vásquez Urquilla is a baker who lives in Santiago Nonualco, La Paz, El Salvador. He started making bread without really knowing the business. He learned by trial and error and with his savings, built an adobe oven at home.

He wanted to expand his business but had never had a loan before. He learned about a USAID small loan program which helped small business owners like himself. The village banking that makes these small loans did not require any guarantee other than the “solidarity” guarantee of the members of the participants group who recommended him. With a loan of $114, he was able to buy flour and a bicycle.

His business was growing and with two additional loans of $229 and $286, Urquilla increased his production and distribution, buying three more bicycles. The village banking requires that the client save 20% of the loan. Mr. Vasquez started saving money at the same time that he had the loans and was rated as an "AA" client.

His business continued to develop but Jeu Asael Vásquez Urquilla met with bad luck - in 2001 his home and the oven were both severely damaged by earthquakes. He was able to receive materials donated by the Government of El Salvador to rebuild his house but the adobe oven was severely damaged and as a result, his sales dropped. Undeterred, he started fixing the old oven but was afraid of working with it due to the constant aftershocks.